How much should a small business spend on marketing?

Guidance clusters around a familiar range, adjusted for how established you are.

• The SBA recommends 7% to 8% of gross revenue for businesses under $5 million, with typical small-business allocations running 5% to 10% overall
• Growth-stage and newer companies building awareness often spend 10% to 12%
• In dollar terms, businesses under $500,000 in revenue typically spend $2,000 to $5,000 a year, while most small businesses land between $5,000 and $50,000
• Industry, competition, margins, and goals shift the right figure
• Spread spend across channels you can actually measure; print, including direct mail, business cards, and signage, consistently ranks high for ROI
• Consistency beats size: regular smaller investments outperform occasional large campaigns
• Underspending consistently correlates with slower growth